Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are...
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Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Cash Flow Years ($ millions) -120 17 0 1-8 The firm's existing assets have a beta of 1.6. The risk-free interest rate is 6% and the expected return on the market portfolio is 14%. What is the project's NPV? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV million Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Cash Flow Years ($ millions) -120 17 0 1-8 The firm's existing assets have a beta of 1.6. The risk-free interest rate is 6% and the expected return on the market portfolio is 14%. What is the project's NPV? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV million
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Answer rating: 100% (QA)
The projects NPV is calculated as follows NPV CF0 CF... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date:
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